There are similar sayings to this in 28.12, 28; and 29.2.

“When the wicked are in authority, transgression increases”: “In authority” and “increases” translate the same Hebrew root and are a play on words; see verse 2. The sense is correct as given in Revised Standard Version. “Transgression” in relation to governing may be taken as referring to lawlessness or crime. Contemporary English Version translates it well: “Crime increases when crooks are in power.”

“But the righteous will look upon their downfall”: “The righteous” contrasts with “the wicked” or evil, dishonest people in line 1. Contemporary English Version calls “the righteous” “law-abiding citizens.” According to Whybray the form of the Hebrew rendered “will look upon” carries the sense “to look with triumph” or “to gloat over.” “Their” does not refer to “the righteous”, but refers back to “the wicked” in line 1. “Downfall” means defeat, destruction, or ruin.

Quoted with permission from Reyburn, William D. and Fry, Euan McG. A Handbook on Proverbs. (UBS Helps for Translators). New York: UBS, 2000. For this and other handbooks for translators see here .